Mumbai based Network Company GTL‘s shares dropped by 62% and the GTL Infrastructures’ share dropped by 43% due to the talk of the town of the company’s helplessness in repayment of loan and selling of its shares.

However, the reports are not sure as a Mauritian company; Technology Infrastructure possessing 11% shares of GTL might have made such a transaction. An analyst stated that foreign investors have 15 % of hold on GTL. So chances are that these investors could have sold the shares. There were reports from the Mauritius, that the government is imposing taxes on foreign gains, so this could be a reason for the selling of shares.

“There are some serious concerns about the company. For a few years, the company has had cash reserves but it has borrowed heavily as well, which is not a great sign”, said S P Tulsian, a market analyst.

The GTL share closed at Rs 127.80 which was earlier at Rs 212.10 a drop of 62.40 % was seen and GTL Infra scrip closed at 16.85 by a drop of 12.85 that is 43.27%, as on BSE.

An analyst stated that something was surely wrong as a drop of 60% and 40% is quite huge.